Big-box retailers such as Best Buy are considered price-takers because:

Question

Quizplus · Accepted Answer

Big-box retailers such as Best Buy sell products that are not unique, as they offer a range of brands and products that can be found at other retailers as well. As a result, they must compete on price with other retailers, making them price-takers rather than price-setters. Option A is incorrect because if their products were unique, they could potentially charge higher prices and have more control over pricing. Option B is also incorrect, as there is significant competition in the consumer electronics retail sector. Option D does not apply to this scenario, as cost-plus pricing refers to a specific pricing strategy and does not determine whether a company is a price-taker or price-setter.

Big-Box Retailers Such as Best Buy Are Considered Price-Takers Because